Rusty Red Scrap Iron is a 1991 annual story.
James is cross when Diesel arranges the wrong train for him by mistake, but Diesel is not one to be crossed and decides to teach James a lesson. The following day, when Diesel was talking to the trucks, they tell him the story about the time Edward had to chase James along the line. After that, Diesel comes up with a suitable name for him, and it was "Rusty Red Scrap Iron". Later, the trucks tease James, who believes that it was Duck behind it all and wants to give him a thing or two.
- The story takes place after Pop Goes the Diesel and during Dirty Work.
- Events from Old Iron are referenced.
- In the first illustration, Diesel appears to be smaller than James.